Perhaps most significant is Senate Bill 1792, which targets the predatory payday loan industry by prohibiting lenders from charging more than 36% annual percentage rate on consumer loans.
The average APR for a payday loan in Illinois is currently 297%, according to the Illinois Department of Financial and Professional Regulation.
The new cap matches the federal protections that were already afforded to active duty service members, and Illinois now joins 17 other states and Washington D.C. with an APR cap of 36% or lower.
“There is no better example of systemic racism than that practiced by some in the lending industry,” said state Sen. Jacqueline Collins, D-Chicago. “Predatory loans have been responsible for worsening the racial wealth gap. Data shows that Black and brown communities are disproportionately trapped by predatory loans.”
Collins said the legislation “strikes the right balance between access to safe and affordable credit” while offering protection from “predatory lending.”
“While we take a moment to celebrate today, we will continue to vigilantly oppose hostile trailer bills, loopholes and carve-outs,” she said.
Another measure in the package, Senate Bill 1692, ups the state’s goal for contracts awarded to minorities, women and people with disabilities from 20% to 30%.
via The Southern
March 24, 2021 at 06:33AM